Merchant Cash Advance
A form of financing where repayment is tied to a percentage of daily or weekly sales.
A merchant cash advance (MCA) provides a business with a lump sum of capital in exchange for a percentage of future sales, repaid automatically through daily or weekly deductions until the total amount (calculated using a factor rate) is paid back. Because repayment scales with sales, payments are generally higher during busier periods and lower during slower ones.
MCAs are typically faster to obtain than traditional loans and are often used by businesses with strong, consistent transaction volume.
Related Terms
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.